The rules for distributions from Individual Retirement Accounts (IRA) and other tax-deferred accounts are very complicated. Regulations require that distributions begin at age 70Y2. Distributions may be taxable as ordinary income and are subject to a 10% early withdrawal penalty if the participant is under age 59%, unless an exception applies. A participant can withdraw money (i.e., take a distribution) from an IRA at any time, unless there is a reason why the participant cannot withdraw money, such as if there is an order of a divorce court.
Typically, to initiate a distribution, the participant fills-out a paper document that is mailed into a central processing facility to request the distribution. Participants may also contact a call center to speak with an advisor to conduct the transaction. However, there is not a process by which the participant can initiate a distribution using a self-service mechanism, such a website, where the participant can review information and make decisions regarding the distribution at his/her leisure, and have the distribution immediately queued for processing by a financial institution.